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CCL - Compu-Clearing Outsourcing Limited - Reviewed Results for 6 Months Ended

Release Date: 07/03/2011 17:00
Code(s): CCL
Wrap Text

CCL - Compu-Clearing Outsourcing Limited - Reviewed Results for 6 Months Ended 31 December 2010 Compu-Clearing Outsourcing Limited Incorporated in the Republic of South Africa Registration number 1998/015541/06 Share code: CCL & ISIN: ZAE000016564 ("Compu-Clearing", "the Company" or "the Group") REVIEWED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2010 INCLUDING CONTINUATION OF CAUTIONARY CONDENSED STATEMENT OF FINANCIAL POSITION 31 December 31 December 30 June 2010 2009 2010
Reviewed Reviewed Audited R`000 R`000 R`000 ASSETS Non-current assets 23,597 21,000 23,614 Property, plant and 21,268 19,112 20,882 equipment Intangible asset 1,629 1,278 1,643 Investment in equity 281 44 263 accounted investees Deferred taxation asset 419 566 826 Current assets 22,543 22,835 26,021 Inventory 31 26 32 Trade and other 7,957 6,503 8,443 receivables Income tax receivable 1,471 - 591 Cash and cash equivalents 13,084 16,306 16,955 Total assets 46,140 43,835 49,635 EQUITY AND LIABILITIES Equity 40,726 39,335 43,148 Share capital and premium 1,959 1,839 1,919 Treasury shares (354) (396) (354) Distributable reserves 39,121 37,892 41,583 Non-current liabilities 2,178 2,504 2,204 Post retirement medical 1,358 1,439 1,399 obligations Deferred taxation 820 1,065 805 liability Current liabilities 3,236 1,996 4,283 Trade and other payables 3,093 1,995 4,127 Income tax payable 143 1 156
Total equity and liabilities 46,140 43,835 49,635 Net asset value per share 98.3 95.3 103.5 (cents) CONDENSED STATEMENT OF COMPREHENSIVE INCOME 6 months ended 31 December 31 December Year ended 2010 2009 30 June
2010 % Inc. Reviewed Reviewed Audited / (decr)
R`000 R`000 R`000 Revenue 13 26,770 23,781 48,898 Operating costs (21,061) (18,597) (38,775) - Distribution (16,658) (13,976) (29,372) - Administration (4,151) (4,139) (9,108) - Other (252) (482) (295)
Operating profit 10 5,709 5,184 10,123 Net finance income 550 789 1,420 - Finance income 641 789 1,420 - Finance expense (91) - - Share of losses of equity (102) (113) (221) accounted investees Profit before income tax 5 6,157 5,860 11,322 Income tax expense (2,431) (2,699) (3,841) Income tax - normal and (1,810) (1,667) (2,809) deferred Income tax - STC (621) (1,032) (1,032) (secondary tax on companies) Profit for the period 18 3,726 3,161 7,481 Other comprehensive - - (652) income for the period Revaluation of property, - - (906) plant and equipment Income tax on other - - 254 comprehensive income Total comprehensive 3,726 3,161 6,829 income for the period Earnings per share (cents) Basic 17 9.0 7.7 18.1 Diluted 18 8.9 7.6 17.9 Ordinary dividend per 15.0 25.0 25.0 share (cents) RECONCILIALTION OF HEADLINE EARNINGS 6 months ended
31 December 31 December Year ended 2010 2009 30 June 2010 Reviewed Reviewed Audited % Inc. / R`000 R`000 R`000
(decr) Profit for the period 3,726 3,161 7,481 attributable to ordinary shareholders Adjusted for : (Profit) loss on (19) - 3 disposal of property, plant and equipment Taxation effect 5 - (1) Loss on disposal of - 10 - intangible assets Taxation effect - (3) - Headline earnings 3,712 3,168 7,483 Headline earnings per share (cents) Basic 17 9.0 7.7 18.1 Diluted 17 8.9 7.6 17.9 Actual number of shares 41,409 41,271 41,704 in issue (`000) Weighted average 41,382 41,240 41,295 number of shares in issue (`000) Diluted weighted 41,919 41,834 41,842 average number of shares in issue (`000) CONDENSED SEGMENT REPORT 6 months ended
31 December 31 December Year ended 2009 2008 30 June 2009 (Reviewed) (Reviewed) (Audited)
% Inc. / R`000 R`000 R`000 (decr.) Software rental revenue 15 20,944 18,276 37,473 Hardware rental revenue 5 5,256 5,028 10,306 Cargowise 16 - - Other 16 554 477 1,119 Total revenue from 13 26,770 23,781 48,898 external sources Segment result - 10,033 8,662 19,104 Software Segment result - 1,815 1,559 2,247 Hardware Segment result - (1,156) (400) (1,869) Cargowise Segment result - Other (4,110) (3,526) (6,747) Total segment result 5 6,582 6,295 12,735 Unallocated amounts Other corporate expenses (323) (322) (1,192) Share of losses of equity (102) (113) (221) accounted investee Profit before income tax 6,157 5,860 11,322 Segmental Assets Software 6,188 7,925 9,248 Hardware 8,231 7,259 8,856 Cargowise - - - Other 29,473 28,027 30,205
Total assets for 43,892 43,211 48,309 reportable segments Investment in equity 281 44 263 accounted investees Other unallocated amounts 1,967 580 1,063 Total assets 46,140 43,835 49,635 Segmental Liabilities Software 72 279 1,069 Hardware 961 91 626 Cargowise ` - - - Other 3,083 2,748 3,287 Total liabilities for 4,116 3,118 4,982 reportable segments Other unallocated amounts 1,298 1,382 1,505 Total liabilities 5,414 4,500 6,487
CONDENSED STATEMENT OF CASH FLOW 6 months ended 31 December 31 December Year ended 2010 2009 30 June
2010 Reviewed Reviewed Audited R`000 R`000 R`000 Profit before income tax 6,157 5,973 11,322 Adjusted for: 860 812 1,957 Non cash items 1,410 1,601 3,377 Net finance income (550) (789) (1,420) Cash generated by trading 7,017 6,785 13,279 operations Decrease increase in post (41) (38) (78) retirement medical obligations Increase in working capital (547) (1,394) (1,188) Cash generated by operations 6,429 5,353 12,013 Net finance income 550 789 1,420 Finance income 641 789 1,420 Finance expense (91) - - Income tax paid (2,901) (2,437) (4,281) Dividends paid (6,205) (10,323) (10,323) Cash outflow from operating (2,127) (6,618) (7,392) activities Cash outflow from investing (1,784) (2,472) (7,392) activities
Acquisition of property, plant (1,528) (2,214) (6,286) and equipment to maintain operations Acquisition of intangible asset (188) (101) (659) Proceeds on disposal of equipment 52 - 37 Increase in loan to associate (120) (157) (484) Cash inflow from financing activities Proceeds from the issue of shares 40 223 345 and sale of treasury shares Decrease in cash and cash (3,871) (8,867) (8,218) equivalents Cash and cash equivalents at the 16,955 25,173 25,173 beginning of the period Cash and cash equivalents at the 13,084 16,306 16,955 end of the period STATEMENT OF CHANGES IN EQUITY 6 months ended 31 December 31 December Year ended 2010 2009 30 June
2010 Reviewed Reviewed Audited R`000 R`000 R`000
Balance at beginning of period 43,148 46,251 46,251 Sale of treasury shares - 190 285 Proceeds of share issue 40 33 60 Total comprehensive income for 3,726 3,161 6,829 the period Profit for the period 3,726 3,161 7,481 Revaluation of property, plant - - (906) and equipment Income tax on other comprehensive - - 254 - deferred taxation effect on impairment Share-based payment reserve 17 23 46 movement Dividends paid (6,205) (10,323) (10,323) Balance at end of period 40,726 39,335 43,148
Commentary The results for the 6 months ended 31 December 2010 are characterised by improved operational performance, with a 13 % increase in revenue resulting in a 10 % increase in operating profit, over the corresponding period. Primary contributors to the increase in revenue were the increase in volumes at existing clients; an increase in the number of new customers; an annual price increase and an increase in the contribution of new products. The Group`s core software revenue, increased by an impressive 15 % (2009 - 6%), over the corresponding period. A 5 % increase in profit before tax was achieved after charges of R1,2 million pertaining to expenses incurred in the Cargowise division. Three Cargowise implementations are currently in progress and revenues will commence in the second half. Increased profit before tax, together with a lower charge for secondary tax on companies, resulted in a 18% increase in profit for the period. Cash generation by operations remains strong and in line with operating profit. Dividend payments, which remain at very satisfactory levels, have resulted in lower average cash balances, which together with interest rate cuts have resulted in lower finance income for the period. During the period, the Group was rated as a value-added level 6 BBBEE contributor. Management are mindful of the importance of BBBEE in bringing about change and are committed to developing the Group`s BBBEE profile, in a meaningful, sustainable manner. ProspectsIndications are that the growth in core revenues will continue in the second half. This will be bolstered by the initial Cargowise revenues. At the time of publication of this announcement, the Company is engaged in negotiations, which if successfully concluded may affect its share price. Shareholders are referred to the cautionary announcement dated 1 March 2011, and advised to continue to exercise caution when dealing in the company`s securities. Basis of preparationThe reviewed condensed consolidated interim financial statement for the six months ended 31 December 2010 have been prepared in accordance with the requirements of International Accounting Standard ("IAS") 34 Interim Financial Reporting, the AC 500 series issued by the Accounting Practices Board, the Listings Requirements of the JSE Limited and the South African Companies Act, 1973 as amended. The accounting policies applied in the presentation of the condensed consolidated interim financial statements are consistent with those applied for the year ended 30 June 2010, except for new standards and interpretations that became effective on 1 July 2010. The adoption of these standards has had no effect on the results for the period nor has it required the restatement of any prior year figures. The condensed consolidated interim financial statements have been presented on the historical cost basis and are presented in Rand, which is Compu-Clearing`s functional and presentation currency. This interim report should be read in conjunction with the annual financial statements for the year ended 30 June 2010. Related party transactionsThere has been no significant change in related party relationships since the previous year. Other than in the normal course of business, there have been no significant transactions during the period with associate companies, joint ventures and other related parties. Distributions to shareholders Compu-Clearing has a policy of paying a distribution at year end. As a result, the company has not declared an interim distribution. Subsequent events No material events have occurred between the reporting date and the date of approval of this condensed consolidated interim financial statement, knowledge of which would affect the ability of the users of this statement to make proper evaluations and decisions. Review report The consolidated statement of financial position at 31 December 2010 and the consolidated statement of comprehensive income, statement of changes in equity, segmental analysis and cash flows for the period then ended have been reviewed by KPMG Inc. Their unmodified review report is available for inspection at the registered office of the company. For and on behalf of the Board Johannesburg A. Garber J. du Preez 07 March 2011 (Chairman) Chief Executive) Directors: A. Garber, J. du Preez, A. Katz*, M. Lutrin*, D. Cleasby*, Dr. T. Mogale*, G. McMahon*, C. Efthymiades, M. Acosta-Alarcon. *(Non-executive) Registered office 7 Drome Road Formain, 2090 PO Box 890856 Lyndhurst, 2106 Transfer secretaries: Computershare Investor Services 2004 Limited Ground Floor 70 Marshall Street Johannesburg, 2001 Sponsor Sasfin Capital A division of Sasfin Bank Limited 07 March 2011 Date: 07/03/2011 17:00:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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